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Nintendo major problem with the Wii U is they thought 3rd party ports and EA's unprecedented support would get them through the game drought .

There second problem is wanting backwards compatibility. So they spend more time tweaking/creating custom design hardware instead of going for ff the shelf modern stuff which would have cost more.

I agree the gamepad cost them a lot too. However I like it, but they didn't show people like they did with the Wii U, why they want the gamepad.